DIRECTV Earnings: Here’s Why Investors are Happy Now

DIRECTV (NASDAQ:DTV) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.54%

DIRECTV Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 72.22% to $1.55 in the quarter versus EPS of $1.02 in the year-earlier quarter.

Revenue: Rose 7.92% to $8.05 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: DIRECTV reported adjusted EPS income of $1.55 per share. By that measure, the company beat the mean analyst estimate of $1.13. It beat the average revenue estimate of $8.03 billion.

Quoting Management: “Our solid fourth quarter consolidated results capped off another year of impressive revenue, earnings and cash flow growth,” said Mike White, Chairman, President and CEO of DIRECTV. “Strong consumer demand for DIRECTV’s diversified portfolio of businesses across the Americas fueled the largest annual net subscriber gain in our history with nearly 3.8 million net customers added including Sky Mexico. As a result, we furthered our lead as the world’s largest and most popular provider of Pay TV video services with over 35 million subscribers and growing rapidly. This tremendous subscriber performance along with solid ARPU and margin performance fueled a 9% top-line increase bringing DIRECTV to nearly $30 billion in revenues, a 32% increase in diluted EPS to $4.58 and a 13% increase in free cash flow to $2.3 billion in 2012.”

Key Stats (on next page)…

Revenue increased 8.6% from $7.42 billion in the previous quarter. EPS increased 72.22% from $0.90 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.25 to a profit $1.27. For the current year, the average estimate has moved down from a profit of $4.21 to a profit of $4.19 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)